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executive team coordination of sox compliance and best practices checklist
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The executive team has regular meetings with the board s Executive Committee The executive team reviews the nonprofit s Whistleblower Protection policy to ensure it is written in compliance with SOX requirements The executive team reviewed the mechanism for whistleblower complaints to be filed to ensure the rights of whistleblowers are preserved The nonprofit has a Document Preservation policy in place The executive team has reviewed and approved a policy prohibiting the destruction of documents during an inquiry or legal action The executive team has conducted (or is planning to conduct in the near future) a review of the nonprofit s internal controls The executive team has developed a crisis communication plan for the nonprofit The executive team has ensured that the procedures for all SOX requirements and best practices have been shared with everyone, staff and volunteers alike The executive team has taken responsibility for conducting unannounced reviews of procedures and protocols to ensure compliance
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SOX Best Practices and the Nonprofit Executive
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Although 8 examines the design of this policy in greater detail, the policy needs to include these talking points: Clearly state that all aspects of the nonprofit s technology belong to the nonprofit There are no expectations of personal privacy when using the nonprofit s technology Identify all of the nonprofit s technology: hardware and software including laptop computers, desktop computers, hand-held devices such as PDAs and Blackberry, cell phones, Internet access, e-mail, and all software programs purchased through the nonprofit Be aware that when electronic devices such as laptops or PDAs are recycled to another staff member, the hard drive of the device may still contain data, documents, or transactions from the previous employee It is important to institute a procedure to erase the hard drive once all of the documents have been extracted and stored according to your nonprofit s Document Retention policy Develop a policy on the storage and transportation of sensitive information out of your nonprofit s facilities Published reports routinely describe scenarios of laptops being stolen that contained sensitive data The same thing could happen to your nonprofit if you store sensitive information about donors, clients, or staff on laptops that leave your premises Staff and volunteers who are entrusted with the nonprofit s cell phones, laptops, PDAs, or other electronics need to understand that they will be held personally accountable for the safety of the equipment, the safe use of the equipment, and the security of the data that is stored within these electronics Crisis Communication and Public Trust Why is it important to plan for a crisis From the moment your organization experiences the onset of a crisis until services are returned to normal, you must be prepared to act Crisis planning will facilitate the development of a rational response to a crisis A crisis is defined as an unstable or crucial time or state of affairs in which a decisive change is impending; especially one with the distinct possibility of a highly undesirable outcome (Merriam-Webster http://wwwm-wcom) Examples of crisis scenarios would include: Fire, earthquake, or flood destroys nonprofit s offices Key executive resigns, dies, or accepts another job Client accuses nonprofit of wrongdoing Nonprofit vehicle involved in serious auto accident Larger implications of a crisis Loss of public trust Loss of donations
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Loss of public sector/private sector contracts or other collaborative ventures Adverse publicity and its effects on observers; for example, pictures on CNN of ARC destroying blood products two months after 9/11 Developing a Crisis Communication Plan The Executive Team needs to develop a crisis management plan well in advance of any incident The plan should include these components: Communication and media relations plan Supporting staff, volunteers, and clients Positioning the nonprofit to resume operations Accepting and acknowledging emergency donations Communication and Media Relations Plan Develop a Crisis Communication plan that includes a designated spokesperson and a backup spokesperson These individuals need to be skilled in communicating with media representatives Additionally, everyone in the nonprofit should have contact information to reach key staff 24/7 The Executive Team needs to develop materials that can be drafted in advance and available at all times to the designated spokespersons Media relations are particularly important, as the way in which your nonprofit interacts with the media can send a message that either reinforces your nonprofit s good name, or sends a message of disorganization and incompetence The Team needs to ensure that there are written protocols for interacting with media representatives These protocols should include these directives: All media inquiries must be directed to the designated spokesperson no exceptions Consequences must be imposed, including termination, for violating the preceding rule These consequences need to apply to volunteers as well Before speaking with the media, the spokesperson should prepare a summary statement based on confirmed facts always tell the truth Determine the most appropriate way to brief board members, staff, volunteers, and clients Update the media as the situation evolves Supporting Staff, Volunteers, and Clients Staff, volunteers, and clients may not be directly involved in the crisis, but need to have access to necessary and sufficient information If the crisis involves a community-wide disaster such as a flood, earthquake, or tornado, then staff, volunteers, and clients could be directly affected
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